Andrew Page is to pay all of its 2,600 employees at least the national living wage rate of £7.20 an hour.
The distributor of vehicle components and workshop equipment will pay all its staff over 18 the new rate, which comes into force in April 2016.
The national living wage, announced by chancellor George Osborne in the Summer Budget 2015, is only mandatory for workers aged 25 and over.
The organisation is implementing the new rate for all staff in order to recognise the efforts of its younger workers.
Mark Saunders, chief executive officer at Andrew Page, said: “The significant levels of investment we made in 2015 have had a positive impact on sales performance, which has led to us being able to offer this wage increase to our team members aged 18 and above.”
Jim Sumner, chairman at Andrew Page, added: “Changes to employment legislation such as this will always have an impact on the industry because they ultimately affect an organisation’s operating costs. We are in a strong position to not just accept but go beyond these changes.”
“We recognise that our staff play a huge role in the success of the organisation, so we want to ensure we retain that talent by sharing our success. All team members are responsible in part for the continued growth of the network, and the younger members of the team are the future of the organisation so should be treated the same way as the rest of the team.”